Sempra Energy subsidiary Sempra Infrastructure has entered into a memorandum of understanding (MoU) with Entergy Louisiana to develop options designed to accelerate the deployment of up to 900MW of renewable energy to power the former’s facilities in the US state.
The MoU is non-binding and sets forth a framework for Entergy Louisiana and Sempra Infrastructure to collaborate on developing additional options for renewable energy procurement for Sempra Infrastructure affiliated facilities.
The procurement is subject to the ultimate approval of the Louisiana Public Service Commission and Sempra joint venture partner Cameron LNG.
The agreement also provides for collaboration for the potential reduction of methane emissions upstream of Sempra Infrastructure facilities.
Sempra Infrastructure owns a 50.2% interest in Cameron LNG, a 12 million tonnes a year (Mtpy) liquefied natural gas (LNG) export facility operating in Hackberry, Louisiana.
It is working with the Cameron LNG joint venture partners to develop a cost-effective and lower-emission potential expansion of the facility.
The proposed Cameron LNG expansion would include an additional liquefaction train with an offtake capacity of approximately 6.75 Mtpy that would use electric compression, equivalent to adding approximately 300MW of demand to the Entergy Louisiana system.
Sempra Infrastructure president of LNG and net-zero solutions Lisa Glatch said: “We have long valued Entergy Louisiana as a critical partner in our efforts to build world-class infrastructure that creates economic opportunity for the state while also providing lower carbon-natural gas and energy security to the world.
“As we look towards electrifying our next generation of facilities and enabling new net-zero solutions like carbon sequestration, we are immensely excited about the opportunity to explore how we can jointly accelerate the deployment of renewable energy to power these new technologies.”
Entergy Louisiana chief executive Phillip May said: “Entergy Louisiana is excited to partner with one of the nation’s leading energy infrastructure companies to work to reduce emissions through clean electrification and integration of renewable energy into their operations.
“The annual electricity consumption of a high load factor industrial facility, like the proposed Cameron LNG expansion, is equivalent to the output of approximately 900MW of renewable energy capacity.
“Entergy is focused on helping industrial customers like Sempra Infrastructure meet their sustainability goals, and the progress we’ve made removing carbon emissions from our own generating fleet benefits our customers and the environment.”
The development of Sempra Infrastructure’s projects in Louisiana is subject to a number of risks and uncertainties, including securing all necessary commercial agreements and permits, obtaining financing and other factors, including reaching a final investment decision.